SBAC Bank declares dividends, to form two subsidiaries
In 2020, its consolidated earnings per share (EPS) slightly decreased to Tk1.39, from Tk1.41 in 2019
Highlights:
- It recommended 4% cash and 4% stock dividends
- Its consolidated EPS slightly decreased in 2020
- In the first half, its EPS fell 36%
- It got listed on stock exchanges in 2021
South Bangla Agriculture and Commerce (SBAC) Bank Limited – a newly listed private sector lender – has decided to form a merchant bank and an asset management company.
In its board of directors meeting on 7 September, the fourth generation bank recommended an 8% dividend – 4% cash and 4% stock – for 2020 for its shareholders for the first time after getting listed on local stock exchanges.
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In 2020, its consolidated earnings per share (EPS) slightly decreased to Tk1.39, from Tk1.41 in 2019.
The annual general meeting (AGM) of the bank will be held on 21 October through a digital platform and the record date has been fixed for 28 September.
The company has explained recommending stock dividends.
It said bonus shares were declared out of profit and retained earnings and it is not from any reserve.
The reason for the declaration of the stock dividend is to meet the Basel III requirement.
The bank will form two subsidiaries
South Bangla Agriculture and Commerce Bank has decided to form two subsidiaries with approval from the regulatory authorities.
In the merchant banking sector, the bank will form a company named SBAC Bank Capital Management Limited with a paid-up capital of Tk40 crore.
The authorised capital of the company will be Tk50 crore.
The bank will also form a company named SBAC Bank Asset Management Company with a paid-up capital of Tk40 crore and the authorised capital of Tk50 crore.
EPS decreased in the January-June period
According to the financial statement, in the first half of 2021, its consolidated earnings per share (EPS) decreased by 36.73% compared to the same period of the previous year.
But in the April-June period, its EPS rose by 12.5% compared to the corresponding period of the previous year.
In the January-June period, its EPS stood at Tk0.31, which was Tk0.49 in the same time of 2020.
In the April-June quarter, its EPS stood at Tk0.18, which was Tk0.16 at the same time as the previous year.
South Bangla Agriculture and Commerce Bank was listed on stock exchanges in 2021 and its share trading commenced on 11 August.
